Getting Divorced After Age 50 When You or Your Spouse Own a Medical Practice

 Posted on April 20, 2022 in Divorce

Being a doctor, dentist, or other medical professional comes with a unique set of advantages and disadvantages. Owning your own practice gives a medical professional a greater degree of control and financial stability, but it also involves significant liability. Gray divorce, or divorce involving spouses aged 50 or older, is already challenging. Divorce involving a business or professional practice is even harder. If you are getting divorced and you or your spouse own a medical practice or other professional practice, it is crucial to understand how this will influence your divorce.

Understanding Ownership of a Professional Practice in a Divorce

Professional practices are treated like other assets in an Illinois divorce. Ideally, spouses will use a prenuptial agreement or postnuptial agreement to specify ownership of a professional practice long before a divorce. However, if no such agreement exists, determining ownership of the practice will be more difficult.

A medical practice that was established during the marriage may be considered marital property. This means that both spouses are entitled to an equitable share of the practice’s value. Medical practices that were established before the marriage may be non-marital property. However, any increase in the value of the practice during the marriage may be marital property.

Property Division Involving a Professional Practice

Of course, a professional practice cannot be divided in the way one could divide the contents of a savings account. However, the spouses may be able to negotiate a property division arrangement that assigns ownership of the medical practice to the practicing spouse and assigns property of equal value to the other spouse. If the spouses are not able to reach a settlement, the case may go to trial.

Whether the division of assets is negotiated or determined by the court, the couple must first determine the value of the professional practice. This requires an in-depth analysis of the business’s current and projected future earnings and many other factors. It is best to consult with a professional appraiser to ensure you accurately value the professional practice.   

Contact Our Skilled Wheaton Divorce Lawyers for Help

If you are getting divorced and you or your spouse is a medical professional, your divorce case will likely be more complicated than the average divorce case. The knowledgeable DuPage County divorce attorneys at Divorce Over 50 - Goostree Law Group regularly work alongside financial experts to address the valuation and division of professional practices and businesses during divorce. We can help you evaluate the benefits and drawbacks of your various options and pursue the course of action that makes the most sense for your unique situation.

Call 630-634-5050 for a free, confidential case assessment today.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm